By Commodity News Service Canada
WINNIPEG, Sept. 30 The Canadian dollar was weaker Tuesday morning, as the currency reacted to the latest inflation data from Statistics Canada.
At 9:24 CDT Tuesday morning the Canadian dollar was at US$0.8940 or C$1.1186 which compares with Monday’s North American close of US$0.8966, or C$1.1153.
Canada’s real gross domestic product held steady in July compared to June, stalling out after six consecutive months of growth. Average market expectations had been for a 0.2% increase in the GDP. The sluggish GDP data should keep the Bank of Canada from raising interest rates anytime soon, according to analysts.
Continued strength in the US dollar internationally also accounted for some of the relative weakness in the Canadian currency.
Bearish technical signals and losses in outside commodity markets, including crude oil, also put some pressure on the Canadian dollar.
Traders are also following the news out of Hong Kong closely, as pro-democracy protests continue in the Asian financial-hub.
The TSX was weaker in early activity, down 23.78 points at 9:24 CDT to sit at 14,953.14.
